No longer encumbered by the Pinnacle Foods deal, Hillshire transaction will move forward.

MeatPoultry.com,
7/2/2014

by Keith Nunes

Tyson's purchase of Hillshire Brands improves its position in prepared foods with a particular focus on the growing breakfast day part.

SPRINGDALE, ARK. — Pinnacle Foods has stepped aside, Pilgrim’s Pride has been outbid and now Tyson Foods, Inc. is in the process of acquiring Hillshire Brands. The two companies have entered into a previously announced agreement in which Tyson will acquire all outstanding shares of Hillshire Brands for $63 per share. The all-cash transaction is valued at approximately $8.55 billion.

“By investing in Hillshire Brands and its collection of leading brands, we have a unique opportunity to transform an important segment of our business, and position Tyson Foods to meet American consumers’ growing demand for protein at breakfast and throughout the day,” said Donnie Smith, president and CEO of Tyson Foods. “We operate in a competitive and complex marketplace that demands bold steps to remain an industry leader. I am confident that together Tyson Foods and Hillshire Brands have the right products and the right people to create years of enhanced shareholder value and ensure more choices for our customers and consumers.”

The companies said the transaction has been unanimously approved by the boards of directors of both companies and is anticipated to close by Sept. 27, the last day of Tyson Foods’ fiscal year.
“After thoughtful consideration, our board of directors concluded that a combination with Tyson Foods represents a unique opportunity to provide shareholders with significant and immediate value while also positioning our business for continued success,” said Sean Connolly, president and CEO of Hillshire Brands. “Importantly, this is a testament to the tremendous value our talented team of employees has created over the past few years by strengthening our brands in the eyes of consumers.”